Consumer Finance Insights
September 1, 2015

FDIC Penalizes Ohio Bank For Alleged Violation of the National Flood Insurance Act

On August 28, 2015, the Federal Deposit Insurance Corporation (FDIC) announced the release of its July 2015 administrative enforcement actions against banks and individuals.  Among those actions was an Order to Pay assessed against an Ohio bank for $9,600 for alleged violations of the Flood Disaster Protection Act of 1973 (FDPA) and Part 339 of the FDIC Rules and Regulations.  Specifically, the FDIC believed the bank violated the FDPA by allegedly failing to:

  • ​”obtain flood insurance at origination in four instances”;
  • “escrow flood insurance in three instances”;
  • “secure adequate flood insurance within 45 days of lapse in one instance”; and
  • “provide notice concerning flood insurance in five instances.”
The bank consented to the civil penalty “without admitting or denying any violations of law or regulation​. . . .”